Nigel and Frank Form NFS, Inc

question 80

Multiple Choice

Nigel and Frank form NFS, Inc. an electing S corporation, by combining the assets of their respective businesses. Nigel contributes $10,000 and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Frank contributes $90,000 and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NFS also assumes $60,000 of debt on Frank's assets. What is Frank's basis in his stock?

• A)$180,000
• B)$220,000
• C)$240,000
• D)$300,000
• E)$360,000

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Definitions:

Statistical Distribution

A mathematical function that describes the probabilities of occurrence of different possible outcomes for an experiment or process.

Waiting Line

A queue or line formed when entities (people, objects, data) wait for service or processing, often analyzed to improve efficiency in various systems.

Waiting Line System

A mathematical model used to analyze the flow of customers or items in systems where there is a need to wait or queue, focusing on time spent in queues and system capacity.

Arrival Or Inputs

In operations research and systems management, refers to the entities that enter into a system or process for processing or service.